Stocks End Higher Yesterday, Inflation Data And FOMC Announcement On Deck This Week

Market Moves You Need to See Stocks End Higher Yesterday, Inflation Data And FOMC Announcement On Deck This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Higher Yesterday, Inflation Data And FOMC Announcement On Deck This Week [Stocks End Higher Yesterday, Inflation Data And FOMC Announcement On Deck This Week]Image: Bigstock Stocks closed higher yesterday with all of the major indexes in the green. Last week we saw the Dow, S&P, and Nasdaq all make new YTD high closes. And they did that again yesterday. With inflation on the decline, a strong and resilient jobs market, and the corporate earnings outlook underscoring growth, there's plenty of excitement in the belief that we could see not just new YTD highs, but new all-time highs very soon. It's been 22 long months since the S&P made its all-time high. We are now only a little more than 4% away from eclipsing it. Wednesday's FOMC announcement could very well be the catalyst to get us over that threshold. Currently, there's a 97.1% probability that the Fed pauses yet again, making it the third pause in as many announcements. But what everybody is really interested in is what the Fed says about future interest rates (are they done with their historic rate hike cycle), and what their outlook is for rate cuts next year, and when they see it beginning. I highly doubt we will get it spelled out as plainly as we all wish it would. But they are likely to update their growth projections for 2024 and 2025, along with their inflation projections, and of course, their interest rate expectations. The Fed has previously suggested we could see a -50 basis point cut in 2024. But many analysts are factoring in -125 basis points. We will see if that outlook changes for the Fed. As for time frames, there's not a lot of conviction that well see anything before May. But you never know. So in addition to the size of the potential rate cuts, the 'when' will be a major topic of interest as well. But before that, we'll get the Consumer Price Index (CPI) inflation report this morning. This will be one of the last inflation reports we'll get before the Fed announcement on Wednesday. The headline number is expected to be flat m/m, while the y/y rate is expected to dip to 3.1% from last month's 3.2%. The core rate (ex-food & energy) is expected to be up 0.3% m/m vs. last month's 0.2%. The y/y rate is expected to remain unchanged at 4.0%, just like last month. Tomorrow we'll get the Producer Price Index (PPI) inflation report. That will be the last inflation report before the Fed announcement. Even though the Fed has likely already made up their mind on rates for Wednesday, what comes next, and what 2024 looks like, is completely up in the air. In the meantime, the Q4 rally continues. And with December typically being a strong month (and the latter part being the best), it looks like there's plenty more upside to go before we close out 2023. So make sure you're taking full advantage of it. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Lithium Discovery So BIG You Can't Miss it, Even From Space]( [image]( Through good markets and bad, one unique stock-picking method has more than doubled the market's average gain with an incredible +24.0% per year. A $10,000 investment in 1988 could have grown to $21.7 million today. With the green energy transition well underway, lithium demand is rapidly outpacing projected supply. While companies frantically search for new sources of this critical metal, one small company is sitting on a massive claim in North America - So big in fact that it can clearly be seen from space! [Free Investor Report Reveals Ambitious Plan To Meet Lithium Demand]( Today's Top Research [5 Reasons to be Bullish into 2024]( Stock Strategist Andrew Rocco unveils 5 bullish undercurrents that will push stocks even higher. [Read More »]( [Want to Play the "Santa Claus" Rally? Buy these 3 Stocks]( Investors looking to take advantage of the strongest time of the year for stocks should consider these picks. [Read More »]( [Where's the New 'Dot Plot'? Global Week Ahead]( The Fed's September dot plot 'terminal rate' -- at 5.6% -- is a key summary metric to watch for an end-of-year 2023 update. [Read More »]( [Alzheimer's Disease Space Evolves in 2023: Stocks in Focus]( Investors are now optimistic about the pipeline candidates of other companies developing treatments for AD. [Read More »]( [5 Undervalued Stocks in the S&P 500 ETF to Buy for 2024]( Though most of the stocks in SPY have returned handsomely, many are undervalued, as reflected in their lower P/E ratio than industry peers. [Read More »]( [See Zacks' Top Stocks for Free]( Starting today, you can get instant access to the latest picks from our time-proven strategies which since 2000 have soared far above the market. While the S&P 500 averaged +6.2% per year, our top strategies averaged gains as high as +46.4%, +49.5% and +55.2% per year. You'll also get our free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. [See Stocks Free »]( [Bull of the Day: GameStop (GME)]( Can't stop, won't stop, GameStop. [Read More »]( [New Zacks Strong Buys for December 12th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through October 2, 2023. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606